How to get Best Car Insurance ?

Buying vehicle insurance can be quite a riddle in itself unless you are adept at choosing the right cover for your car. If your car is under five years old, you will find persistent auto insurance salesman trying to sell their product. However, you need to pick the insurance policy carefully after going through fine print as insurance policies are the very definition what is written in this fine print. It is always advisable to compare quotes from multiple insurance providers to see who is offering you the best deal.
Following is a checklist to ensure you get the best out of your car insurance policy:

How to choose the best car insurance policy
Buying vehicle insurance can be quite a riddle in itself unless you are adept at choosing the right cover for your car. If your car is under five years old, you will find persistent auto insurance salesman trying to sell their product. However, you need to pick the insurance policy carefully after going through fine print as insurance policies are the very definition what is written in this fine print. It is always advisable to compare quotes from multiple insurance providers to see who is offering you the best deal.
Following is a checklist to ensure you get the best out of your car insurance policy:

Types of vehicle insurance
Generally plans offered by general insurance providers can be broadly classified under two categories:-
a) Third party liability insurance - This plan usually covers damage to property, accidental death and injury to a third party. This plan is also mandatory requirement for all vehicles plying on public roads.
b) Comprehensive Plan - This usually is a preferred options by many as it covers for both 'own damage' and legal liability of third party. It also covers theft or damage caused by unforeseen perils like cyclone, earthquake, fire explosion etc.

Factors that affect the premium for vehicle insurance
The factors affecting premium calculation are based on the risks that insurance company will be underwriting and these can be can be grouped under four categories:
a) Vehicle related risks - Make, fuel type and cubic capacity etc. are few parameters which will determine the premium. Some vehicles like SUV (sports utility vehicle) and commercial vehicles often need higher premium payouts as insurance firms get large number of claims on such vehicles. Generally diesel vehicles have a 10-15 per cent higher premium than petrol cars. At the time of renewal Insured declared value (IDV): At the time of renewal the age of the vehicles and its depreciation predominantly determine the premium that you will pay. For vehicles less than five years old, based on the years of use depreciation is applied to the ex-showroom price to calculate the IDV. For vehicles that are older than five years the market value of the car is taken as IDV.
b) Location related risks- This depends on the area of registration. Usually premiums are high if you live in urban area, near highways or densely populated area. If theft is high in the area where you live then the premiums go up.
c) Claims history related - If claim for your vehicle insurance then premium can go up following year.
d) Driver related - The age and profession of the driver is taken into account. If there are multiple drivers then the premium goes up